Action Economics Survey results:
Action Economics Survey results: geopolitics took center stage this week, but CPI made a brief cameo appearance as trading finishes up the week. Tensions over North Korea provided a good opportunity to take some chips off the table after the Dow posted nine straight days of record highs, peaking at 22,118. The flight to safety trade also knocked bond yields lower, with the 10-year Treasury note slipping to 2.180%, the lowest since late June. Meanwhile, the tame CPI report today helped ease market worries over another Fed rate hike. Wall Street bounced on the assumption the Fed won't be hiking rates for a third time this year amid uncertainties over the path of inflation, with geopolitics and debt limit issues additional arguments supporting a dovish stance. Interestingly, however, the Survey Median still reflects expectations for a December tightening, with about 75% of the forecasts showing a 1.375% mid-point. No one projects any Fed action before December. Retail sales, production, housing numbers, and trade prices are on tap next week. Median results indicate a rebound in sales, ongoing growth in manufacturing and production, and a bounce in import and export prices.